People are giving too much importance to exchanges

[pixie85]

firstly never measure your "SAVINGS" based on the volatility of the market price because the market price is indeed controlled by exchanges..

How should he measure his savings then? You can say what you want how the price can be volatile and we should invest what we can afford to lose and all that, but it won't change the fact that if someone spends 1000 dollars buying bitcoin and uses 10% of his savings, that person expect to see a similar number to be there after some time, especially when he reads articles where bitcoin is referred to as inflation hedge.

I agree with OP here. Bitcoin is caught up in all the altcoin drama.
The silver lining is that while price is affected the protocol is not. Price is and will be affected because many people who have bitcoin on binance see an easier way our in selling than moving to self-custody. Many of these people don't even know how to do it so all they can do is sell and withdraw fiat .

[jokers10]

Yeah, not much doubt about that. still, I hadn't expected the market to recover so fast.
It's good to see that trouble at an exchange is seen as minor.

I'd suppose that it's not because Binance situation doesn't impact the market much. Look at the BNB rate, it looks like people are still optimistic about Binance and its chances with SEC confrontation. They are now trying to withdraw Gary Gensler from the game. So who knows, it can be so that Binance will not be harmed too much in this situation. The market reacts on this not so negative expectations and stay "calm".

[Etranger]

I'd suppose that it's not because Binance situation doesn't impact the market much. Look at the BNB rate, it looks like people are still optimistic about Binance and its chances with SEC confrontation. They are now trying to withdraw Gary Gensler from the game. So who knows, it can be so that Binance will not be harmed too much in this situation. The market reacts on this not so negative expectations and stay "calm".

I also think that binance will still fight with the SEC and this may have a positive impact not only on the BNB rate, but also on the market as a whole. Moreover, such a precedent will not go unnoticed. This situation has the potential to draw more attention to cryptocurrencies, especially those doubters who do not trust the cryptosphere due to its obscure status and blurred relationship with the state.

[fuguebtc]

I'd suppose that it's not because Binance situation doesn't impact the market much. Look at the BNB rate, it looks like people are still optimistic about Binance and its chances with SEC confrontation. They are now trying to withdraw Gary Gensler from the game. So who knows, it can be so that Binance will not be harmed too much in this situation. The market reacts on this not so negative expectations and stay "calm".

I also think that binance will still fight with the SEC and this may have a positive impact not only on the BNB rate, but also on the market as a whole. Moreover, such a precedent will not go unnoticed. This situation has the potential to draw more attention to cryptocurrencies, especially those doubters who do not trust the cryptosphere due to its obscure status and blurred relationship with the state.

Although we have always disliked centralized exchanges like Binance after what FTX did. But I think we should support Binance in this situation, what if the SEC's goal is not only Binance but they want more and keep looking to control our entire market? If the SEC wins with XRP and then Binance or Coinbase, it will be an outcome not in our favor, it will set a terrible precedent, and our freedom will be gone. I hope this time, Binance and Coinbase can join forces against the SEC.

[Who is John Galt?]

Although we have always disliked centralized exchanges like Binance after what FTX did. But I think we should support Binance in this situation, what if the SEC's goal is not only Binance but they want more and keep looking to control our entire market? If the SEC wins with XRP and then Binance or Coinbase, it will be an outcome not in our favor, it will set a terrible precedent, and our freedom will be gone. I hope this time, Binance and Coinbase can join forces against the SEC.

This is all a squabble of centralized structures, that's the point. Whichever of them wins, it is unlikely that this will lead to an increase in the position of bitcoin. Bitcoin is a decentralized system, and it is best when it will be used not through centralized intermediaries, but directly, as it was originally intended. So in this and every other centralized project confrontation, I am on the side of bitcoin!

[GideonGono]

~snip~
Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Yup exchange and BTC are different things and exchange (Binance and other exchange would disappear) most of us wouldn't care much, but we aren't the only investor.
There are some who got into crypto because of trading, and they might be doing it only on those exchange because they only trust those exchange.
And besides some of us are using centralized to liquidate our crypto that's way some of us really care so much about those centralized exchanges.

[Silberman]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

I know what you mean as I have suffered the same consequences when I have never used any of those exchanges, however just because we are not part of their customer base, this does not mean that a great deal of the community did not suffer directly by those events, and as such it makes sense the price of bitcoin was affected because of it, even if bitcoin itself had nothing to do with this as well, is it unfair? I would think so, but that is the way the economy at large works.

[ItsCrafty]

Yup exchange and BTC are different things and exchange (Binance and other exchange would disappear) most of us wouldn't care much, but we aren't the only investor.
There are some who got into crypto because of trading, and they might be doing it only on those exchange because they only trust those exchange.
And besides some of us are using centralized to liquidate our crypto that's way some of us really care so much about those centralized exchanges.

Yes, people give significant importance to exchanges because they serve as the primary platforms for buying, selling, and trading cryptos like Bitcoin. Exchanges play a main role to facilitate, liquidate and accessibility of cryptos, enabling users to convert their fiat currencies into digital assets instead of traditional system towards digital wallets to save the cryptos. They also provide a marketplace where buyers and sellers can deal in, examine the prices, and make transactions securely. These exchanges also offer different features by allowing users to take solid based decisions. Moreover, exchanges often provide additional services like wallet storage, security measures, and customer support, which enhance the overall user experience and trust in the crypto system.

[AmoreJaz]

~snip~
Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Yup exchange and BTC are different things and exchange (Binance and other exchange would disappear) most of us wouldn't care much, but we aren't the only investor.
There are some who got into crypto because of trading, and they might be doing it only on those exchange because they only trust those exchange.
And besides some of us are using centralized to liquidate our crypto that's way some of us really care so much about those centralized exchanges.

let's admit that a lot of us are still using these exchanges for so many services basically to exchange our crypto to other crypto or fiat. so we can't discard their presence in this market. at some point we need to get our cash from crypto as most merchants do not accept crypto as payment.
they are 2 different things but the failure has some sort of impact as people are losing their confidence. but only for a short period of time. hence, we always bounce back to where we were.

[n0ne]

People give significant importance to exchanges for some reason. Without these exchange it is really hard to have good liquidity. It is really hard for buying and selling. Maybe if these exchanges weren't available, people would've got adopted to the P2P form of buying and selling, but the trading practice could've been more conservative.

With everything there'll be pros and cons, failure of the exchanges used to have impact over the market. However this is part of the market, same as what we experience as bullish and bearish movement. In each and every activity, there is a need for systematic process to be followed and the exchanges does it for profit and mistakes happen which is common.

[panganib999]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Everything has its place. There are people who believe so much in exchanges to take care of their assets security more than they think they can do for themselves, and as such, most people save their coins on centralized exchanges with hope and believe that they are the best option. Which is the worst idea anyone can have. A true Bitcoiner knows the value and benefits of self-custodial.

The price of Bitcoin always goes down based on the level of fudz, which is a cause against Bitcoin. The Bitcoin price is not controlled by anyone, but most times it can be manipulated, since the case of the SEC coming after Binance CEO is enough reason for non-believers to start panic selling, which can cause a drastic price dump, but this can only be temporary and not a permanent price.

But you shouldn't be considering your savings gone until you have sold them out entirely. So long as you still hold your coin, there is a higher chance and possibility of regaining everything that you have calculated to have lost when the bull market comes. That's why we are always advised to hodl strong in a bearish market and never to sell under panic.

I don't think it's about these people believing in the fact that Binance will secure their assets better than they could, I mean this is a CEX that gets hacked and robbed from almost every year by the millions, I don't think it's going to scream "security" anywhere, although you're right, there's a good amount of people in this industry who thinks that Binance will take care of their assets. Although going back, that is not what I think is the reason why.

Bitcoin as it stands today's accessible through multiple channels, but it would be stupid and dishonest to say that Binance and Centralized Exchanges aren't a way for these people to get into crypto and start their cryptocurrency journey. It's been like that for years, and the recent barring of Binance and the legal implications it carries with it just spells "we can't use bitcoin anymore" to people who were introduced to cryptocurrency by Binance. And it being a major player in the industry too, makes a lot of people lose confidence in the industry, hence the drop in valuation.

You could say that OP is right, people are giving too much importance over exchanges, but that attention is warranted and deserved, as they played a great part in introducing regular people into this industry too, especially in the 2019-2023 mark.

[karabiber]

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

The stock market is a place for trading cryptocurrencies, not a valuation place. The relationship of exchanges with the valuation of cryptocurrencies is indirect and they interact with each other. The majority of people prefer to keep their Bitcoins on exchanges rather than in cold wallets, and they want to quickly dispose of BTC in case of a possible negative situation. I think these people have nothing to do with investing and aim to profit from price changes in the stock market.

Many of us do this by the way. It would be interesting if the dangers to be experienced in the Exchanges do not affect the prices, as the exchanges are intertwined with the crypto markets. The stock market and cryptocurrencies will always be intertwined, and it is difficult to think of one without the other for this reason. If you have Bitcoin you are lucky and keep it in the cold wallet.

[Blitzboy]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Everything has its place. There are people who believe so much in exchanges to take care of their assets security more than they think they can do for themselves, and as such, most people save their coins on centralized exchanges with hope and believe that they are the best option. Which is the worst idea anyone can have. A true Bitcoiner knows the value and benefits of self-custodial.

The price of Bitcoin always goes down based on the level of fudz, which is a cause against Bitcoin. The Bitcoin price is not controlled by anyone, but most times it can be manipulated, since the case of the SEC coming after Binance CEO is enough reason for non-believers to start panic selling, which can cause a drastic price dump, but this can only be temporary and not a permanent price.

But you shouldn't be considering your savings gone until you have sold them out entirely. So long as you still hold your coin, there is a higher chance and possibility of regaining everything that you have calculated to have lost when the bull market comes. That's why we are always advised to hodl strong in a bearish market and never to sell under panic.

I don't think it's about these people believing in the fact that Binance will secure their assets better than they could, I mean this is a CEX that gets hacked and robbed from almost every year by the millions, I don't think it's going to scream "security" anywhere, although you're right, there's a good amount of people in this industry who thinks that Binance will take care of their assets. Although going back, that is not what I think is the reason why.

Bitcoin as it stands today's accessible through multiple channels, but it would be stupid and dishonest to say that Binance and Centralized Exchanges aren't a way for these people to get into crypto and start their cryptocurrency journey. It's been like that for years, and the recent barring of Binance and the legal implications it carries with it just spells "we can't use bitcoin anymore" to people who were introduced to cryptocurrency by Binance. And it being a major player in the industry too, makes a lot of people lose confidence in the industry, hence the drop in valuation.

You could say that OP is right, people are giving too much importance over exchanges, but that attention is warranted and deserved, as they played a great part in introducing regular people into this industry too, especially in the 2019-2023 mark.

Your viewpoint does carry weight; it's true that trusting centralized exchanges entirely could potentially be risky. However, let's not neglect that these platforms have catalyzed the crypto revolution for the common man. For many, exchanges like Binance have been the gateway to the world of crypto, simplifying the process of buying, selling, and holding digital assets.

Yet, I agree that complete reliance on such platforms for asset security could be a bit naive. The mantra in crypto circles, "Not your keys, not your coins," still rings true. An ideal approach might involve using hardware wallets or other self-custodial solutions, along with exchanges.

As for the FUD impacting Bitcoin prices, I concur that emotional trading often leads to volatility. In such scenarios, the classic advice of HODLing (Hold On for Dear Life) seems most apt, don't you think?

[Minhxx]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

Most bitcoins are speculative. They are located mostly on exchanges, bad news will always affect bitcoin, Speculators will take profits when possible

[Bitcoin_people]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

There are many people who believe in Bitcoin and exchange it using centralized exchanges to keep their assets safe as they think it is best. If a person thinks like this then it is not at all beneficial to protect his wealth. But I think a bitcoiner will never do such a stupid thing to keep his exchange assets safe, rather he will have different security wallets.
Bitcoin price is not always at the same level it is always based on ups and downs. The price of Bitcoin is not controlled by anyone but follows the various directions of the market. But we saw a lot of people lose their wealth when FTX went bankrupt. At that time the Bitcoin market also became quite a bear market and most people suffered a lot from it. But the fact that the Binance CEO has been sued may have caused the price of Bitcoin to drop again. Because then many people heard about this incident and sold bitcoins due to which the market went down a lot. But the market never stays the same it goes back to its previous position again and again because bitcoin market is never permanent it is always temporary. But one should never lose faith in investing in Bitcoin but be patient. So I would suggest you if you have invested in Bitcoin then definitely try to hold it. And invest from bear market and later you wait till bull market then there will be high profit potential.

[Hypnosis00]

6 months ago, my savings went down because of the FTX debacle. I've never used FTX, I've never been a customer of this company, but my savings are in BTC, and because of that failure, BTC's value went down, and so went my savings.

Today, bis repetita. I've never used Binance. I've never been a customer of this company, but because the SEC sues Binance, BTC is down, and so are my savings, so I have a message to all bitcoiners out there.

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

There are many people who believe in Bitcoin and exchange it using centralized exchanges to keep their assets safe as they think it is best. If a person thinks like this then it is not at all beneficial to protect his wealth. But I think a bitcoiner will never do such a stupid thing to keep his exchange assets safe, rather he will have different security wallets.

I understand why some people are preferred to keep their Bitcoins in an exchange wallet and that is for trading, not for holding. But these people know what will happen when an exchange got scammed or whatever, yet they still do it despite the risk because of their trust. It could be a manipulating power that most exchanges injected into the mind of the holders. We know it was wrong but can't change their stances as well as it was their choice. They will change their minds when experiencing losses of their funds from exchanges.

[libert19]

Ftx was big, so is binance, of course market gonna give some damn when they go down.

[Etranger]

I understand why some people are preferred to keep their Bitcoins in an exchange wallet and that is for trading, not for holding. But these people know what will happen when an exchange got scammed or whatever, yet they still do it despite the risk because of their trust. It could be a manipulating power that most exchanges injected into the mind of the holders. We know it was wrong but can't change their stances as well as it was their choice. They will change their minds when experiencing losses of their funds from exchanges.

And what kind of way out do you offer for those who are engaged in everyday trading and who need to have constant access to the exchange? Cold wallets are, of course, more reliable and safe, but you can’t really trade with them. With the cold wallets the exchange rate update is late, and the commission is higher, and transactions are not completed so quickly. The exchange is more convenient for trading, no doubt.

[ancafe]

Exchanges and BTC are 2 different things. One exchange going down doesn't mean BTC must follow.
Binance will disappear? I don't give a damn.

The thing is people use exchanges only for the short trades they make and some people on the forums I'm sure don't store bitcoins on binance or other centralized exchanges but because binance provides a trading service some people still use them today in trading. I've used Binance several times for short trades but it's not for long term use and for day traders maybe some people use a centralized exchange only for trading.

Because it's impossible every day they have to transfer assets to their wallet every time they finish trading, Bitcoin has never followed that centralized exchange which you have to understand and bitcoin has never had anything in common with exchanges as the two are quite different. Who cares if binance is lost or not?

[justdimin]

Your viewpoint does carry weight; it's true that trusting centralized exchanges entirely could potentially be risky. However, let's not neglect that these platforms have catalyzed the crypto revolution for the common man. For many, exchanges like Binance have been the gateway to the world of crypto, simplifying the process of buying, selling, and holding digital assets.

Yet, I agree that complete reliance on such platforms for asset security could be a bit naive. The mantra in crypto circles, "Not your keys, not your coins," still rings true. An ideal approach might involve using hardware wallets or other self-custodial solutions, along with exchanges.

As for the FUD impacting Bitcoin prices, I concur that emotional trading often leads to volatility. In such scenarios, the classic advice of HODLing (Hold On for Dear Life) seems most apt, don't you think?

I agree, Binance deserved all the power they got and that's why it should be considered as a great thing, there is nothing that shows they have done anything bad for the crypto world. Yes they are as powerful as an exchange could get but that doesn't mean that they did anything wrong, they are quite alright with what they have done so far.

I know that people are worried about what they are going to do when it is not that easy to handle, but that doesn't mean that it is not going to be simple neither, it is going to be quite tough for Binance as well. When you consider them as the biggest exchange ever to exist, do you think that's an easy thing to do? They deserve it because they managed to handle being that big without hurting anyone or doing anything wrong.